CLA-2 RR:CR:GC 960284 RFA
Mr. John Sveum
Tower Group International, Inc.
P.O. Box 269
Sweetgrass, Montana 59484
RE: Electroluminescent (EL) Displays; Flat Panel Displays;
Signaling Apparatus; Electrical Machines and Apparatus
Having Individual Functions, Not Specified or Included
Elsewhere; Principal Use; Headings 8531 and 8543; HQs
959945, 957795, and 960634
Dear Mr. Sveum:
This is in response to your letter dated January 29, 1997,
to Customs in New York, on behalf of The Westaim Corporation,
concerning the tariff classification of an electroluminescent
(EL) display under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The merchandise is the Westaim Quarter VGA Red-Green TDEL
Display [hereinafter referred to as "Quarter VGA EL Display"].
The EL display consists of a 320 x 240 pixel configuration
display glass, printed circuit boards (PCBs) and integrated
circuits, all of which are housed in a bezel. Product literature
indicates the following applications for the subject EL display:
transportation; military/avionics; medical; test and measurement;
etc.
ISSUE:
Is the Westaim Quarter VGA EL Display classifiable as
signaling apparatus, or as electrical machines and apparatus
having individual functions, not specified or included elsewhere,
under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
In HQ 957795, dated March 3, 1997, we stated that EL
displays and liquid crystal displays (LCDs) are of the same class
or kind (generally known in the trade industry as flat panel
displays), and should receive the same tariff treatment. Customs
then stated that EL displays are prima facie classifiable in the
following HTSUS headings: 8471, which provides for ADP machines
and units thereof; 8531, which provides for electric sound or
visual signaling apparatus; and, 8543, which provides for
electrical apparatus having functions not elsewhere specified or
included.
Customs has held that headings 8471 and 8531, are use
provisions subject to Additional U.S. Rule 1(a), HTSUS. See HQ
956870 (July 27, 1995) and HQ 951288 (July 7, 1992). Additional
U.S. Rule 1(a), HTSUS, states that: "[a] tariff classification
controlled by use (other than actual use) is to be determined in
accordance with the use in the United States at, or immediately
prior to, the date of importation, of goods of that class or kind
to which the imported goods belong, and the controlling use is
the principal use." Therefore, unless a principal use for ADP
output (heading 8471) or signaling (heading 8531) can be
established satisfactorily either by design limitation or other
reliable means, EL displays are classified as electrical machines
and apparatus not elsewhere specified for in chapter 85 (heading
8543). See HQ 957795; HQ 960634 (June 27, 1997).
In the attached copy of HQ 959945, of this date, Customs
determined that the class of Quarter-VGA displays are not of the
kind solely or principally used in an ADP system because of there
wide usage in a variety of signaling apparatus. Classification
is determined based upon the use of the class of goods and not
the actual use of the specific imports. Group Italglass U.S.A.,
Inc. v. United States, 839 F.Supp. 866, 867, 17 CIT 1177, 1177
(1993). Based upon the application of HQ 959945, we find that
the subject Quarter VGA EL Display belongs to the class or kind
of flat panel displays with a Quarter VGA standard that are
classifiable under heading 8531, as signaling apparatus.
HOLDING:
The subject Quarter VGA EL Display, is classifiable under
subheading 8531.80.90, HTSUS, which provides for: "[e]lectric
sound or visual signaling apparatus (for example, bells, sirens,
indicator panels, burglar or fire alarms). . .: [o]ther
apparatus: [o]ther: [o]ther. . . ." The general, column one rate
of duty is 1.9 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
Attachment: HQ 959945